Tourism Ministry seeks to launch new private equity fund to overhaul sector
Minister of Tourism, Rania Al- Mashat, announced that the national government plans to determine a fresh private equity fund to upgrade Egypt’s hotels along with provide new investment opportunities in the sector.
Al-Mashat explained during her TV interview with Bloomberg that step will be part of a thorough sector strategy, called ‘E-Trip’ that could include new legislation for the which may be introduced to the homely house of Representatives.
Commenting with this announcement, the former Chairperson of the Egyptian Tourism Federation, Elhamy El-Zayat told Daily News Egypt (DNE) that when this private equity fund is activated, it shall result in great progress for Egypt generally, also to the tourism sector specifically.
He explained that the role of the fund is merely to greatly help the financially troubled investors.
El-Zayat elaborated that fund will buy shares from investors which are financially troubled, noting that the fund shall choose the share by its current market’s value, then it’ll sell it by its market value at the sale time again, either to exactly the same investor or another, after an agreed time frame.
“Thus, this fund will benefit by the differences in prices between your right time of the share’ s sale and purchase, and alternatively, the investors themselves shall benefit by maintaining their investments with no the pressure of requesting bank loans,” he continued.
El-Zayat remarked that activating this fund is essential, as this it had been launched before in March 2015, nonetheless it had not been activated.
In March 2015, the Minister of Tourism, Hisham Zazou, declared through the Egypt Economic Development Conference in Sharm El Sheikh, the launch of a Tourism equity Fund, in coordination with AYADY for Development and Investment, Cairo Capital Group, and the National Investment Bank, explained El-Zayat.
Google News, Bing News, Yahoo News, 200+ publications
Meanwhile, the former minister said at that right time, that the fund’s aim was to regenerate the tourism industry through restructuring finance for tourism projects, without imposing additional financial burdens on the constant state, declaring that the tourism fund would contribute with EGP 50m, targeting the assortment of investments of nearly $250m to improve the tourism sector.
Talking concerning the obstacles that impede activating this fund, Adel Abdel Razek, former vice-president of the Egyptian Federation of Tourist Chambers told DNE that the issue was in collecting the administrative centre because of this fund, explaining that at the proper time it had been agreed that the minister of finance, government, banks, and also the private sector, shared in the administrative centre of the fund, but this didn’t happen unfortunately, he said.
He affirmed that the Egyptian Federation of Tourist Chambers has been one of the primary ones who needed the establishment of the fund, agreeing with El-Zayat that it’s not about establishing the fund, it`s about activating it.